Fiscal cliffhanger

In the business world, in the legal realm and even at the lower reaches of government, such as cities and counties, negotiation is an important part of life. Small business owners negotiate prices and terms of contracts. Attorneys negotiate settlements. Municipalities negotiate power rates and many other financial aspects of running their area governments.

In Washington, D.C., however, the best we appear to be able to do is reach a stalemate. Unlike in true negotiations, when both sides give a little to obtain at least some of what they want, Democrats and Republicans in Congress don't want to give an inch. They may call what they are doing "standing up for principles." What they really are doing is driving our country off the fiscal cliff.

President Barack Obama has budged a bit from his initial stance. His latest proposal is to allow the Bush-era tax rates to expire for families earning $400,000 or more per year and has lowered his 10-year tax revenue goal from the $1.6 trillion he was lobbying for before Thanksgiving.

Republicans appear to have given up their fight to keep rates the same across the board, regardless of a person or family's income. House Speaker John Boehner of Ohio announced Tuesday that Republicans in Congress would propose a bill to raise rates on families earning $1 million or more per year.

That's a start on the part of both sides in this game that, in reality, only the American people can lose. The truth is most elected lawmakers in Congress are fairly wealthy and have their health care and pensions provided by our tax dollars. The real people living in small-town America will be the ones to pay the price for their inaction.

At the least, we finally have some give on both sides, so now is the time that we finally should get some action before taxes are reset to higher rates. If we're honest, $1 million is too high of a threshold. Perhaps $500,000 would be a more reasonable limit. If Republicans can come down to that number, then the president should consider that a good starting point and sign such a bill.

Then, budget cuts have to be on the table. We may not like the sequestration cuts that hack programs throughout the U.S. federal government. But deep cuts are necessary in some programs.

With a debt of more than $16 trillion and deficits adding more than $1 trillion each year, it's fairly simple math to figure out how much has to be eliminated.

Will cuts be painful? Yes. Is more revenue needed from taxes? Yes.

But the alternative is far more painful and will have a longer-lasting effect on the country.

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

Email this article

Fiscal cliffhanger

In the business world, in the legal realm and even at the lower reaches of government, such as cities and counties, negotiation is an important part of life. Small business owners negotiate prices